Future members of the Danish Parliament (Folketinget) will receive a salary increase as part of a new remuneration reform agreed upon by a broad majority in the Folketinget. The agreement, detailed in a press release from the Folketinget, also includes adjustments to pension schemes and severance pay.

Specifically, the annual salary for a member of parliament will rise from 948,000 kroner to 1.08 million kroner. Ministers will also see increases, with the Prime Minister’s remuneration increasing from 2.09 million kroner to 2.48 million kroner annually.

In return, politicians’ pension schemes will be reduced, with future members receiving an amount corresponding to approximately 18 percent of their salary in pension. Severance pay will also be reduced to a maximum of 12 months for both members of parliament and ministers.

The agreement was reached between the government parties, SF, Liberal Alliance, the Conservatives, the Social Liberals, and The Alternative. The Red-Green Alliance, the Danish People’s Party, and the Denmark Democrats are not part of the agreement.

The reform, which must be adopted in the Parliament chamber after the summer holidays, will apply after the next parliamentary election. The new terms will only affect politicians newly elected to the Folketinget or appointed as minister for the first time. Current members of parliament will not have their terms changed.

Maternity conditions for members of parliament are also under review. A working group will be established to propose a new scheme for maternity and parental leave by September 1, addressing concerns that the current rules are “out of step with the conditions that apply in the general labor market.”

Overall, the reform is projected to save 90 million kroner annually once fully implemented by 2090, representing a 20 percent reduction in current costs. According to the press release, this agreement significantly reduces politicians’ total income over a lifetime.

The debate surrounding the salary and pension conditions of members of parliament has been ongoing for several years. A remuneration commission was established in 2014 by several parties to provide recommendations for a new, comprehensive salary system for politicians. While the commission proposed higher salaries and lower pensions in 2016, some parties have since deviated from the initial agreement to follow the commission’s recommendations.